Today, I would like to address an important topic that holds great significance for students planning to study abroad—the process of securing an education loan. This crucial step allows students to finance their academic aspirations independently, and it is vital that they make well-informed decisions. In order to assist students in this endeavor, I present to you ten essential points to remember while opting for an education loan.
Research is crucial: Before embarking on this journey, students must conduct thorough research across various online platforms. They should also reach out to friends and family members who have taken similar loans in the past. Seeking information from influencers, asking questions on platforms like Quora, and joining relevant social media groups can provide valuable insights.
Analyze the required amount: Prior to opting for a loan, students should carefully estimate the total expenditure that they will incur. Comprehensive research will aid them in gaining a clear understanding of this aspect. Institutions such as Avanse provide assistance to students in comprehending these details, with professionals readily available to guide them through the process of planning their academic journey.
Cover the holistic cost of education: When considering an education loan, students should ensure that it covers not only the tuition fees but also the ancillary expenses. Avanse's solutions, for instance, cover the holistic cost of education, including living expenses, accommodation costs, travel expenses, and more.
Choose the right lender: Selecting the right education financing partner is of utmost importance. When choosing a lender, it is imperative to consider their domain expertise in managing education loans, their adherence to regulatory norms, and their unique selling propositions. Avanse, as a student-centric organization, has devised student-friendly evaluation methodologies. Rather than solely relying on the co-borrower's financial background, we evaluate students comprehensively, taking into account factors such as their past academic performance, entrance test scores, university/institute ranking, and chosen course.
Opt for the right repayment strategy: Planning the repayment of the loan is a critical aspect that can impact a borrower's credit score. In this regard, students should carefully consider the loan tenure as part of their strategy. It is essential to discuss all the components of the loan, including the loan amount, tenure, repayment options, and EMIs (Equated Monthly Installments), with the lender. This collaboration will enable the design of the best repayment strategy that aligns with the student's future journey.
Understand the interest rates and associated terms: Students should be well-informed about the interest rates and associated terms and conditions of the education loan they are considering. This understanding will allow them to make informed decisions and select the most suitable loan option.
Evaluate the flexibility of the loan: Flexibility in loan repayment is an essential factor to consider. Students should assess whether the lender provides options for a grace period, loan restructuring, or prepayment without additional charges. These features can significantly ease the financial burden and provide peace of mind during the repayment phase.
Consider the reputation of the lender: It is vital to consider the reputation of the lender before finalizing an education loan. Look for testimonials and reviews from previous borrowers to gauge their experiences and determine the lender's reliability and professionalism.
Explore scholarships and grants: In addition to education loans, students should also explore scholarships and grants that may be available to them. These financial aids can significantly reduce the burden of loan repayment.
Seek guidance from experts: Finally, it is always beneficial to seek guidance from experts in the field of education financing. Institutions like Avanse have experienced professionals who can provide personalized assistance and guidance throughout the loan application process, ensuring that students make informed decisions.
In conclusion, dear students, securing an education loan is a crucial step toward realizing your academic aspirations. By adhering to these